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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capital Gains
The difference between the cost basis and the amount for which you sold the stock

Capital Gains and Losses

• For tax purposes, the difference between the purchase price and selling price.
• Profit or loss that occurs when an investor sells an asset. If the asset's sale price is greater than the original purchase price, a capital gain results. If the asset is sold for less than the original price the investor experiences a capital loss.

Certificate of Deposit
An arrangement between an investor and a financial institution which calls for the financial institution to pay a specific rate of interest over a set period of time. Certain deposits are FDIC insured up to applicable limits.

Claim Against an Estate
Refers to a charge against an estate to settle an agreement or an outstanding obligation (as in the case of bills unpaid at the time of death).

Closing
The consummation of a transaction. In real estate, closing includes the delivery of a deed, financial adjustments, the signing of notes, and the disbursement of funds necessary to the sale or loan transaction.

Closing Agent/Attorney
A closing agent or attorney assures that all documentation related to the sale of a house has been completed properly, including the title search and title insurance. The closing agent explains all closing documents to the buyer and the seller, obtains their signatures where necessary and records the documents.

Closing Costs
All of the costs to the buyer and seller individually that are associated with the purchase, sale, or refinancing of real property. They include, but are not limited to, prorating of agreed items such as taxes and rents, the cost of title insurance policies, and the cost of credit reports, recording fees and escrow fees.

Closing Statements
A financial disclosure giving an account of all funds received and expected at the closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.

Codicil
An addition or other change to an existing will.

Collateral
Property pledged as security for a debt, such as real estate as security for a mortgage.

Commission
An agent's fee for negotiating a real estate or loan transaction, often expressed as percentage of the sales price or mortgage amount.

Commitment
An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to compliance with stated conditions.

Common Stock
Units of ownership that give voting rights to shareholders. (See Preferred Stock.)

Condominium
A form of ownership of real property. The purchaser receives title to a particular unit and a proportionate interest in certain common areas.

Contest of a Will
Legal proceedings to prevent or alter distribution of estate assets as described in a will.

Contingency
A condition that must be met before a contract is binding. For example, the sale of a house might be contingent upon the seller paying for certain repairs.

Contract of Sale
A contract between a purchaser and a seller of real property to convey a title after certain conditions have been met and payments have been made.

Conventional Loan
A mortgage loan not insured by the Federal Housing Administration or guaranteed by the Veterans Administration.

Cost Basis
The purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes.

Credit Report
A report to a prospective lender on the credit standing of a prospective borrower, used to help determine credit worthiness.

Cyclical Stocks
Stocks whose earnings fluctuate according to the business cycle.